Release of MP funds

The government today said that companies planning simultaneous issue of domestic and American Depository Receipts and Global Depository Receipts would have to price the overseas offering at or above the domestic offer price.

Companies offering the overseas issue at or above the domestic offer price will be exempted from the revised pricing guidelines, a finance ministry release said.

The norms will also be applicable to companies which issue ADRs or GDRs within 30 days of the domestic issue.

According to the pricing guidelines applied for stand-alone ADR-GDR issues, the overseas issue will have to be priced at two weeks' domestic average price or six months' domestic average price, whichever is higher.

"Companies going for such simultaneous or immediate follow-on offerings in the ADR, GDR market will have to take Securities and Exchange Board of India approval for such issue, which will specify the percentage to be offered in the domestic and overseas markets," the release said.

The finance ministry also said that unlisted companies which have already issued ADRs, GDRs or Foreign Currency Convertible Bonds in the international market would be required to list domestically by March 31, 2006.